Consumers are paying down their debts across an increasing number of loan categories, according to the American Bankers Association.
The financial services trade group released third-quarter consumer delinquency data on Jan. 5 for 11 loan categories, reporting that delinquencies had declined across seven of the categories. Cards was not one of them.
Bankcard delinquencies rose to 3.25% of total outstandings from 3.22% the previous quarter, but the rate was down 39 basis points from 3.64% a year earlier (
Delinquencies fell across seven of the loan categories the association tracks, including two of the largest categories. Delinquencies on indirect auto loans, or those arranged through a third party such as an auto dealer, fell to 2.6% from 2.89% a quarter earlier, and delinquencies on closed-end home equity loans fell to 4.12% from 4.38%.
The association also tracks delinquencies in three categories of open-end loans, or lines of credit: home equity lines of credit, non-card revolving loans and bankcards.
Home equity and bankcard delinquencies remained “virtually flat” with movements of just a few basis points, says James Chessen, the organization’s chief economist, while the smaller category of non-card revolving loan delinquencies grew to 1.43% from 1.11%.
